Shares of Cirrus Logic (CRUS), which sells audio processing chips to Apple (AAPL) for the iPhone, iPod Touch and iPad, are down 67 cents, or 2.5%, at $27.95 amidst worries over Apple’s sales of the iPhone, prompted yesterday by articles over the weekend in The Wall Street Journal and Japan’s Nikkei News Service.
Sterne Agee chip analyst Andrew Huang this morning comes to the stock’s defense, reiterating a Buy rating on the shares and a $55 price target, writing that “Despite recent supply chain chatter regarding orders cuts at its largest customer, we believe the impact to Cirrus has likely already been reflected in its March quarter revenue guidance (down 15% Q/Q).”
Huang is modeling $281 million in revenue in the December-ending fiscal Q3 and $1.35 in EPS, below the Street’s average revenue estimate of $286 million and $1.41 in EPS.
For March, he’s looking for $235 million in revenue and 96 cents, again, below consensus $239 million and $1.04.
He writes, “Given our recent industry checks on build plans for its largest customer, we are comfortable with CONSENSUS estimates for both the December and March quarters.”
Huang points out the stock is down 21% since its November 1st fiscal Q2 report, trailing the Nasdaq’s 3% gain.
Other Apple suppliers are having time this morning as well, including�Qualcomm�(QCOM), down 27 cents, or half a percent, at $63.97, and�Skyworks Solutions�(SWKS), down 55 cents, or 2.6%, at $20.46.
Update: Doug Kass�of�Seabreeze Partners this morning writes that he’s surprised to find Apple’s suppliers are actually not down as much as he’d have thought they would be. Kass was kind enough to share his Bloomberg grab of the stocks since Apple’s introduction of the iPhone 5 on September 12th:
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